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Oct 4, 2012

GATA | THE GATA DISPACH -October 4, 2012- : Sovereigns may prove bigger than commercials shorting gold, Fitzpatrick says

Sovereigns may prove bigger than commercials shorting gold, Fitzpatrick says

9:13p ET Thursday, October 4, 2012

CitiGroup market analyst Tom Fitzpatrick today tells King World News that gold investors may worry too much about the rising open interest in gold futures, which often indicates preparation by the big commercial trading shorts to run small speculative longs out of the market.

Fitzpatrick says: "People are concerned about the commercial shorts in gold, but at the end of the day there are a number of different players in the gold market. The ones we are most focused on are the players who are taking gold out of the market and are not going to be putting it back onto the market. Those large entities are obviously official authorities, central banks, sovereign wealth funds, etc. So while it is possible to chop around because of commercial speculation, and maybe that worries day-to-day traders, for us it is not really a dynamic we are focused on in the big-picture view."

An excerpt from Fitzpatrick's interview is posted at the King World News blog here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc

The Economist | Business this week: Highlights of news coverage from September 29th -October 5th 2012

The EconomistBusiness this week

The yuan strengthened to 6.285 against the dollar, the near-highest since China introduced its modern currency regime in 1994. A strong yuan hurts Chinese exports and may spur the authorities in Beijing, faced with a slowing economy, to intervene.
Global manufacturing remained subdued in September, with purchasing-managers' indices weak in many countries. China saw its PMI nudge up to 47.9, from 47.6 a month earlier. (Anything below 50 implies a contraction.) The euro zone's index has now been languishing for 14 months in a row. In France it plummeted from 46.0 to 42.7, one of the sharpest monthly drops since the survey began in 1998.
Things looked cheerier in American factories, where the ISM index of manufacturing activity beat expectations and crept up to 51.5, ending three consecutive months of contraction.
New car sales in America rose by 12.8% in September compared with a year earlier, to an annualised 14.9m vehicles, the zippiest rate since March 2008. Toyota and Honda led the way: their American sales soared by 42% and 31% respectively. Chrysler's sales rose by 12%.
Tesco reported a 11.6% drop in pre-tax profits in the first six months of the year, to £1.7 billion ($2.6 billion). The fall, the first for the British supermarket chain in 18 years, came after weak sales in Europe and Asia and heavy investment at home.
Bank of America agreed to pay $2.43 billion to investors who claimed that it had misled them about the acquisition of Merrill Lynch, a troubled bank, in 2008. See article
Authorities in New York sued JPMorgan Chase for an alleged fraud by Bear Stearns, an investment bank it bought during the financial crisis. Investors lost more than $20 billion on mortgage-backed securities issued by Bear Stearns. JPMorgan Chase said it would contest the claims. See article

No trouble brewing
Shareholders in Fraser and Neave, a Singapore-based conglomerate, voted to relinquish control of its beer business to Heineken. The Dutch brewer will pay S$5.6 billion ($4.6 billion) for a 40% stake in Asia Pacific Breweries, which makes the popular Tiger brand, to add to the 56% it already owns, bolstering its position in Asia, the world's fastest-growing beer market.
Nasdaq had to cancel some trades in the shares of Kraft Foods, which had recently switched its listing from the New York Stock Exchange, after a glitch caused their price to jump by 29%. The incident came a day after American regulators met to discuss concerns about the impact of technology on market stability.

What's mine is yours
The board of Xstrata recommended its shareholders to back the merger with Glencore after the Swiss commodities trader revised its offer from 2.8 to 3.05 Glencore shares for each Xstrata share. The Anglo-Swiss miner's owners will decide on the deal in November.
News Corporation hired a senior official from America's Securities and Exchange Commission and a former federal prosecutor to head new compliance units at its television, film and publishing arms, tarnished by the phone-hacking scandal. John McCoy and Brian Michael will work under Gerson Zweifach, the media giant's general counsel and its new chief compliance officer.
Google unexpectedly dropped its complaint, filed with the International Trade Commission, alleging that Apple had infringed patents owned by Motorola Mobility, which the search giant bought in May for $12.5 billion. Speculation swirled as to whether Google was planning to resubmit the suit in a federal court.
Hewlett-Packard's shares hit a nine-year low after Meg Whitman, the tech firm's boss, warned that earnings may slide steeply in 2013 in every business except software.

Lost in the woods
Nokia is looking to sell and lease back its headquarters outside Helsinki. The move could raise €200m-300m ($260m-390m) for the cash-strapped phonemaker.
Meanwhile, a group of former Nokia employees raised €200m ($259m) for a mobile operating platform based on MeeGo, a technology the Finnish firm ditched for Microsoft's Windows. Their start-up, Jolla, plans to unveil a new phone later this year.

Marjorie Scardino will step down as chief executive of Pearson (part-owner of The Economist) in January. Dame Marjorie took the helm 16 years ago, becoming the first female boss of a FTSE 100 company and turning a broad conglomerate into an education and publishing group. She will hand over to John Fallon, head of Pearson's international-education division.

The Economist | Politics this week: Highlights of news coverage from September 29th -October 5th 2012

The EconomistPolitics this week

» The first of three presidential "debates" took place in Denver. Most pundits declared it a victory for the Republican challenger, Mitt Romney. Although neither he nor the president landed any knockout blows, Mr Romney appeared both more relaxed and more focused; the president seemed listless, rambled in his answers and seemed unable to make the case for his own re-election. One usually well-disposed analyst wondered whether a stunt double had been sent in his place. Mr Romney needed a victory: polls have shown him slipping in all the crucial swing states that will determine the outcome on November 6th. See article»
» A state judge blocked an attempt by the Republican-led legislature in Pennsylvania to introduce a strict ID requirement for voting in next month's elections. The judge ruled that time was too short for voters to acquire the necessary documents.
» Ross Perot, the last man to launch a significant third-party bid for the presidency, in 1992 and 1996, emerged from public silence to warn that America, which this year is running a deficit of more than $1 trillion for the fourth year in a row, is heading for "disaster".
» Barack Obama came under criticism for his administration's failure to prevent the death of Christopher Stevens, America's ambassador to Libya, in Benghazi in September. It is becoming increasingly clear that American diplomats had known of a threat to diplomatic staff from jihadists.

They can come true
» An unexpected result in Georgia's parliamentary elections saw Bidzina Ivanishvili's Georgian Dream coalition beat President Mikheil Saakashvili and his United National Movement. Mr Saakashvili was praised for graciously accepting defeat. It will be the first peaceful transition of power in Georgia's history. See article»
» Officials from the "troika"—the European Commission, the IMF and the European Central Bank—arrived in Athens to press for more public-expenditure cuts before they can approve the next tranche of Greece's bail-out. Yannis Stournaras, Greece's finance minister, is under pressure to find an extra €2 billion ($2.6 billion) of savings to satisfy the inspectors. See article»
» François Hollande's Socialist government faced a new tax revolt from a group of French entrepreneurs furious about a jump in capital-gains taxes proposed in the 2013 budget. Calling themselves "Les Pigeons", French slang for "the fall guys", they used social-media sites to rail against the measure. See article»

Good odds
» Colombia's president, Juan Manuel Santos, underwent surgery after saying that he had been diagnosed with prostate cancer. He said he has a 97% chance of recovery. The start of his government's peace talks with the FARC guerrillas were delayed by a week. A number of Latin American leaders, such as Brazil's Luiz Inácio Lula da Silva and Dilma Rousseff, Venezuela's Hugo Chávez and Paraguay's Fernando Lugo have suffered the disease in recent years. All have survived.
» The Mexican government announced that it had captured Iván Velázquez Caballero, a leader of the violent Zetas mob and one of Mexico's most wanted criminals. Previous arrests of high-ranking gangsters have not caused drug trafficking or the murder rate to decline.
» The government of Ghana detained an Argentine military vessel, the Libertad, at the request of NML Capital, an investment company that holds bonds on which the Argentine government defaulted in 2001. Holders of 93% of that debt have taken part in a voluntary restructuring, and Argentina vows it will not pay those who stayed out.

Pressing dislike
» In the Philippines popular anger grew over a new internet law. The Cybercrime Prevention Act deals with crimes including identity theft, online fraud and child pornography. But critics say that provisions relating to libel could mean prosecution for postings on social networks such as Facebook or Twitter. Protesters hacked the websites of the president and both houses of Congress.
» At least 38 people were killed in Hong Kong when a pleasure cruiser collided with a ferry. Seven crew members from the two vessels were arrested. The crash was Hong Kong's worst maritime accident in more than 40 years.
» America sent the first batch of Osprey tilt-rotor aircraft scheduled to replace ageing helicopters at the marine base at Futenma in the Okinawa island chain in southern Japan. Okinawans resent the huge American military presence and say that the Ospreys, involved in accidents which have killed 36, bring a fresh danger to local residents. But some officials hope they will send a strong message to China, which is acting aggressively around nearby islands controlled by Japan but claimed by China. 

Crossing the line
» Tension between Turkey and Syria rose sharply after five people in the Turkish border town of Akcakale were killed by Syrian shelling. Turkish artillery retaliated, reportedly killing several Syrian soldiers near the town of Tel Abyad. See article»

» At least 40 people were killed in explosions in a government-controlled district of Syria's second city, Aleppo, as fighting raged between President Bashar Assad's forces and rebels.
» Iraqi officials said September had been the country's deadliest month for two years, with at least 365 people dying in attacks, many of them multiple bombings, carried out mainly by Sunni extremists against Shias, who dominate Nuri al-Maliki's government.
» Iran's currency, the rial, lost more than 25% of its value against the dollar on October 1st and 2nd. The government blamed the fall on Western sanctions imposed on Iran because of its nuclear plans, but the government's own economic and financial mismanagement is to blame. See article»
» At least 26 people were killed in a college in the town of Mubi, in north-eastern Nigeria, apparently after a student election stirred ethnic and religious strife. The town had already been under a curfew because of an insurgency in the north by Boko Haram, an Islamist group. See article»
» The Shabab, a militant movement linked to al-Qaeda, abandoned Somalia's port city of Kismayo, its last urban stronghold, as Kenyan troops backing the country's new government took over. See article»

NFA | Enforcement Actions -October 4,2012-:: NFA permanently bars New York commodity trading advisor, BKT Capital Management, and Basil R. Fayadh, an associated person and principal

The New York Times | Global Update -October 4, 2012-: Turkey's Parliament Approves Further Military Action Against Syria

The New York Times International Herald Tribune
October 4, 2012

Global Update


Turkey's Parliament Approves Further Military Action Against Syria

The measure authorizes further military action against Syria, as Turkey began its second day of shelling targets within Syria in response to a mortar attack that killed five civilians.

In Fallout After Debate, Obama Asks, Which Mitt Was That?

The Obama campaign came out swinging, including stronger rhetoric, a new television ad and a conference call questioning Mr. Romney's truthfulness.

Romney's Tone May Not Sit Well With Conservatives

Many conservatives, who have long viewed Mitt Romney's ideological commitment with some skepticism, might have been less than thrilled with his tone.

Photographs: 125 Years of The International Herald Tribune

A look back at some of the photographs that have appeared in The International Herald Tribune since it was founded in 1887.

Op-Ed Columnist

In the Time of Skinny Cows

Spain agonizes after its spending spree, but fracture is not the answer.

Cajoling, Drugging and More as Rebels Try to Draw Defectors

Without defections, the Syrian rebels say the opposition cannot hope to grow, never mind prevail in its battle with the government of President Bashar al-Assad.

Merchants Reopen in Tehran, With Police Watching for More Protests

Witnesses said that protests did not resume over the devaluation of the currency, the rial, and black-market money traders and prospective customers stayed away.

Rights Group Says Its Researcher in Moscow Threatened

Human Rights Watch says that a staff member received repeated threats this week of an attack focused on her pregnancy.

In a Shuttered Gasoline Can Factory, the Two Sides of Product Liability

The closing of Blitz USA has become a rallying point for proponents of tort reform, but a lobbying group's new commercial ducks the complexities of recent product liability cases.
Economix Blog

What to Look For in Friday's Jobs Report

The September numbers due on Friday are likely to absorb heightened attention as the election draws near.

Fed Members in Accord on Bond-Buying, Minutes Show

Policy makers at the Federal Reserve were nearly united last month in their decision to support the economic recovery, according to an official account of the meeting.
Bits Blog

H.P.'s Chief Says a Revival Is Unlikely Before 2016

Meg Whitman told a meeting of Wall Street analysts that they should expect sharply lower revenue and profits. Her statements led the company's stock to drop almost 13 percent.

Google and Publishers Settle Over Digital Books

The agreement is a step forward for Google's plan to digitize the world's books, but it must still reach an agreement with authors.
Media Decoder Blog

Steve Jobs's High School Girlfriend to Publish Memoir

A memoir by Chrisann Brennan, Steve Jobs's high school girlfriend and the mother of his daughter, will cover their relationship Mr. Jobs's "ambition and ruthlessness" in business.

Schumacher to Quit Formula One for a 2nd Time

Michael Schumacher, who has not won since he returned in 2010 from his first retirement, said he had doubts as to whether he could muster the energy to continue for another season.

To Apprentice, or to Start at the Top?

More and more drivers are bypassing the traditional Formula One training ground of smaller teams, which is proving costly to those drivers and to their rivals on the grid.

So Close and Yet So Far From World Drivers' Title

Since 2010, the Australian driver Mark Webber has been overshadowed by his younger teammate at Red Bull, Sebastian Vettel.

Drought Leaves Cracks in Way of Life

Lost amid the withered crops and dehydrated cattle that symbolize the most widespread drought in decades has been the toll on families that depend on farming.

Sioux Racing to Find Millions to Buy Sacred Land in Black Hills

More than a half-dozen Sioux tribes are trying to come up with the $9 million purchase price for Pe' Sla, a sacred parcel of land seized long ago by the federal government in violation of treaties.

Infant DNA Tests Speed Diagnosis of Rare Diseases

A new method for analyzing newborns' genetic histories sped the process of zeroing in on a disease-causing mutation from weeks or months to a couple of days.
Op-Ed Columnist

Why Let the Rich Hoard All the Toys?

Should the top 1 percent of Americans really have more than the bottom 90 percent? That's America: one nation, unequal for all.
Op-Ed Columnist

The Season of Debates

You deserve a hand, interested citizens. You've been through a lot this long campaign. Let's try to figure out who won the battle of the zingers.

Trading Places

Hugo Chávez used to campaign as a crusader for poor Venezuelans while the opposition was busy spewing vitriol at him. Now, just days before the election, the roles are reversed.

DealBook | DealB%K Afternoon Edition -October 4, 2012-: Fact-Checking Obama's 'Kiss' to Wall Street

Thursday, October 4, 2012
Fact-Checking Obama's 'Kiss' to Wall Street The Dodd-Frank regulatory overhaul, the government's response to the 2008 financial crisis, was designed to be a slap in the face to Wall Street. But Mitt Romney, during the first debate of the presidential campaign, claims it was "the biggest kiss that's been given to New York banks I've ever seen."
    Sprint Shares Fall on Report of Possible Counterbid for MetroPCS Shares of Sprint were down more than 3 percent in midday trading on Thursday, after Bloomberg News reported that Sprint was weighing a potential challenge to T-Mobile's proposed merger with MetroPCS.
    Another View: Keeping the Lines of Communication Open Patrick Hull, a serial entrepreneur and angel investor, says that investment firms and their principals are not A.T.M.'s; they should be treated as advocates and resources. They are members of a start-up company's team and should be kept informed of developments.
    Barclays Names McGee Top Americas Corporate and Investment Banker Barclays named Hugh E. McGee III, one of the firm's top deal makers, as its most senior corporate and investment banker in the Americas on Thursday as part of a broader reorganization within the bank.
    Unilever Weighs a Sale of Skippy The British-Dutch consumer products giant said on Thursday that it was considering selling its Skippy peanut butter brand in the United States and Canada as it focused more on emerging markets.
    Louis Dreyfus and JPMorgan to Sell Energy Trading Venture A joint venture of Louis Dreyfus and a hedge fund owned by JPMorgan Chase has announced plans to sell an energy trading business to a group of investors, including Paul Tudor Jones.
    Malaysian Pay TV Company Astro Raises $1.5 Billion in I.P.O. The pay television operator Astro Malaysia's $1.5 billion I.P.O. ranks as Malaysia's third-largest this year, as the country has emerged as a surprise home for leading initial public offerings.
    Mitsubishi Unit Buys Aircraft Leasing Firm From Oaktree for $1.3 Billion Mitsubishi UFJ Lease and Finance has agreed to acquire Jackson Square Aviation, an aircraft leasing company based in San Francisco, from Oaktree Capital Management for 100 billion yen.
    Buzz Tracker
    Hedge Fund Does Battle at Sea Elliott Capital Management is trying an unusual tactic to collect on Argentina government bonds. An Argentine navy ship with more than 200 sailors was seized in Ghana, after an Elliott subsidiary applied for a Ghanaian court injunction, The Financial Times reports.
    Economic Reports Data to be released on Friday include unemployment for September and consumer credit for August.
    Corporate Earnings Companies scheduled to report quarterly results on Friday include Constellation Brands.
    Overseas Ceatec Japan, a consumer electronics convention, takes place in Tokyo through Friday. The Bank of Japan's policy-setting board will meet, and Prime Minister Mario Monti of Italy will begin two days of talks in Malta with the leaders of France, Spain, Malta, Portugal, Morocco, Algeria, Libya, Tunisia and Mauritania.
    DealBook Video
    Business Day Live: Longtime Chief of Pearson Is Leaving
    Business Day Live: Longtime Chief of Pearson Is Leaving What an executive transition means for media giant Pearson. | European Central Bank leaves rates unchanged. | Western Union's chief executive on how emerging markets are transforming his business.


CBS NEWS | Political Hotsheet Top Stories October 4, 2012-.: Biden praises Obama debate performance

The CBS News Political Hotsheet newsletter


After Wednesday night's first presidential debate, Vice President Joe Biden said he was "proud" of Obama
Read full story
Biden praises Obama debate performance

Ryan: Romney will hit Obama in debates Republican VP nominee Paul Ryan expressed confidence Wednesday in nominee Mitt Romney's debating skills

Air Force One aborts initial landing approach President's aircraft delayed landing due to cloudy weather, landed "uneventfully" shortly after

Obama: Romney's tough talk on China The president tells college students in Ohio that his GOP rival's record of profiting from outsourcing doesn't align with his rhetoric on China

Romney: Don't expect The nominee focused his Ohio pitch on one of the few areas where he continues to lead President Obama: Paying down the debt

New York Times Politics -October 4, 2012-: In Fallout After Debate, Obama Asks, Which Mitt Was That?


In Fallout After Debate, Obama Asks, Which Mitt Was That?

The Obama campaign came out swinging, including stronger rhetoric, a new television ad and a conference call questioning Mr. Romney's truthfulness.
Mitt Romney and President Obama challenged each other on many issues.

Debate Praise for Romney as Obama Is Faulted as Flat

Republicans, along with many Democrats, accused President Obama of delivering an uninspired and defensive performance at the first presidential debate on Wednesday night.

More Politics

Jim Lehrer explained the rules of the debate to the audience prior to the start of the first presidential debate on Thursday in Denver.

After Debate, a Harsh Light Falls on a Moderator

Democrats in particular were critical of the light touch used by the moderator Jim Lehrer.
Mitt Romney and President Obama shaking hands before challenging each other on a number of domestic policy issues in their first debate.

Obama and Romney, in First Debate, Spar Over Fixing the Economy

Mitt Romney aggressively pressed President Obama on the economy, jobs and health care in a debate that avoided the one-liners that sometimes emerge from presidential face-offs.
Students watched the presidential debate at the University of Denver from their apartment on Wednesday. The debate had little of the overt nastiness that has characterized the campaign.
News Analysis

A Clash of Philosophies

In the first presidential debate, President Obama argued that government plays an essential part in economic growth, while Mitt Romney contended it should get out of the way.

A G.O.P. Operative Long Trailed by Voter Fraud Claims

A Florida voter registration scandal involving Nathan Sproul, a highly paid Republican operative, is just the latest case in which questions have been raised about his methods.
Check Point

Taking Stock of Some of the Claims and Counterclaims

A number of misleading statements were made by both candidates in Wednesday's debate on subjects like the federal deficits, taxes, Medicare and health care.
Ann Romney after speaking in Lakeland, Fla., in August. Many attendees said her speech was the highlight of the Republican National Convention.

Ann Romney Takes Bigger Role on Behalf of the Man She Knows

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In Iowa and Beyond, Tough Tests for Tea Party Favorites

Representative Steve King's troubles show the liability of a national profile built largely on Tea Party credentials and incendiary statements.

The Caucus

Election Exit Polls Are Eliminated in 19 States

The consortium of television networks and The Associated Press cite the growing costs associated with taking into account the growing popularity of early voting, among other things.

On the Debate Stage, Romney the Moderate

Many conservatives, who have long viewed Mitt Romney's ideological commitment with some skepticism, might have been less than thrilled with his tone.

After the Debate, Campaigns Quickly Release New Ads

President Obama and Mitt Romney hope to build on, or move past, their debate performances.

Election 2012 iPhone App

A one-stop destination for the latest political news, from The Times and other top sources around the Web. Plus opinion, polls, campaign data and video.
The TV Watch
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The first presidential debate was a glaringly public confrontation between President Obama and Mitt Romney that looked oddly intimate and personal.
Political Times
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Oct. 3: Romney's Electoral Challenge, and More on Debate Instant Polls
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Interactive Feature: The First Presidential Debate
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Video: Denver Debate Highlights
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Photographs: The 2012 Presidential Campaign, Week by Week
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Graphic: State of the Race for the Senate
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